HSBC poll shows fund managers opt for bonds and cash

By Crystal Hsu / Staff Reporter

Global fund managers are moving away from equities to bonds and cash in the current quarter, as prolonged uncertainty in Europe and the tepid US economy warrant caution on risky assets, HSBC said in a survey released yesterday.

Half of the polled fund managers are taking an underweight view toward equities, compared with 25 percent last quarter, amid continued market volatility, the survey found.

Only 30 percent of the respondents maintained a positive view on equities this quarter, significantly lower than 63 percent in the previous quarter, the survey said.

“The survey affirms a significant shift in sentiment across global fund managers,” Simon Williams, head of HSBC’s wealth management, said in a statement. “The rest of the quarter will be marked by a flight to safe havens as investors wait for things to turn in 2012.”

The survey helped account for dwindling turnover on the local bourse, which shrank to a 33-month low of NT$58.2 billion (US$1.93 billion) on Monday.

It showed 44 percent of fund managers held overweight views toward cash this quarter, up from none last quarter, as the European debt crisis remains unsolved, while 22 percent were bullish on bonds this quarter, compared with none last quarter, as investors look for yields in a low interest-rate environment.

Market volatility and risk aversion resulted in a decrease in funds under management that totaled US$3.96 trillion in the third quarter, down 10 percent from the second quarter, the survey said.

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